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Spanish Practice on Investment Treaties

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Chapter Summary

The opening up of trade and a certain degree of investment liberalisation, prevalent on the domestic and international levels, has affected Spain’s external trade policy. In trade and investment relations within the EU, the basic freedoms operate alongside the Bilateral Investment Treaties (BITs) which old Member States may have had with new Member States. The objectives set out in the BITs place a number of obligations on both Contracting States in respect of any investment at its three key moments: ex ante, during and ex post. Protection of investors and their investments can also be undertaken via diplomatic protection, the chapter assesses, among others, in light of Spanish practice, whether the existence of a BIT prevents the exercise of such diplomatic protection. BITs also typically include a comprehensive definition of the territory in which investments may be undertaken so as to enjoy protection under the international agreement.

Keywords: Bilateral Investment Treaties (BITs); Contracting States; diplomatic protection; Spanish cooperation; territorial limits

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